Sectoral FDI cycles in South and East Asia

Doytch, Nadia

doi:10.1016/j.asieco.2014.12.002

Cited by 21 publications

(11 citation statements)

References 26 publications

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“…Overall, the data analysis dictates that there is a significant and positive relationship running from FDI toward economic growth. (Aurangzeb and Stengos, 2014;Doytch, 2015;Leitão and Rasekhi, 2013;Li and Liu, 2005;Mihalache-O'Keef, 2018). Asian region and low-income judging from the size of estimates, it is easier to interpret that the magnitude of foreign investment in developing countries is of much larger nature when the whole sample is considered.…”

Section: Full Panel and Regional Analysis With (Sgmm)mentioning

confidence: 99%

Do foreign direct investments help to bolster economic growth? New insights from Asian and Middle East economies

Hussain

Bashir

Shahzad

2021

WJEMSD

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PurposeThe prime objective of this study is to offer fruitful implications about allocation and directing foreign direct investment (FDI) to gain maximum economic advantage. The study offers innovative findings by contributing to a new angle.Design/methodology/approachThe study used the annual data of 24 countries, for the period of 1995–2016 and employed quantile regression and GMM as main estimation techniques. For robustness of empirical findings and to check income effect, the study divided the countries as high income, low-income panels.FindingsOverall, the findings reported very interesting and surprising results as regional analysis. The results show the sensitivity of FDI for Middle East and high-income group of countries, inferring that there might several other factors due to which FDI is adversely affecting growth and these countries need to reform institutional quality.Research limitations/implicationsThe paper is restricted for 24 countries of Asia and Middle East, based on the data availability.Practical implicationsThe high-income countries should put more efforts to attract funds. The Asian and Middle East countries countries can update trade regulations to encourage entrepreneurs and reduce trade tariffs.Originality/valueThe present study investigated the role of FDI for economic growth in the context of Belt and Road Initiative countries of Middle East and Asian regions. The paper reviewed the past literature and identified regional analysis as a research gap to focus on Belt and Road Initiative in Asia and Middle East region.

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Section: Full Panel and Regional Analysis With (Sgmm)mentioning

confidence: 99%

Do foreign direct investments help to bolster economic growth? New insights from Asian and Middle East economies

Hussain

Bashir

Shahzad

2021

WJEMSD

View full text Add to dashboard Cite

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“…Broner et al (2013) uncover a similar procyclicality finding regarding aggregate gross capital inflows and outflows. Doytch (2015, 2021a) uncovers counter-cyclicality of FDI flowing into services industries, and Lane (2015) emphasises the country’s characteristics in explaining cross-country variation in international net FDI flow cyclicality. The responsiveness of FDI to shocks or prolonged periods of recession, such as the current pandemic crisis, has not been well examined with the exception of a few studies that look at natural disaster shocks (Doytch, 2020) and economic accelerations and decelerations (Doytch, 2021b).…”

Section: The Covid-19 Pandemic As An Economic Shockmentioning

confidence: 99%

Tracking Greenfield FDI During the COVID-19 Pandemic: Analysis by Sectors

Doytch

Yonzan

Reddy

et al. 2021

Foreign Trade Review

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We study the trends and fluctuations in greenfield foreign direct investment (GFDI) during the first wave of the COVID-19 pandemic crisis on a global scale. We analyse the data of a data set of GFDI provided by fDi Markets ( Financial Times) to understand the contraction of GFDI during the first three quarters of the year 2020, taking into account the sector of the investment and the host and home country. We analyse both the long-run trends and the quarter-over-quarter changes in GFDI to capture its fluctuations before and during the first wave of the COVID-19 crisis and the 2008 global financial crisis. Our findings cast light on which countries’ and industries’ GFDIs were most affected by the pandemic crisis and draw a comparison to the global financial crisis. To our surprise, many services industries have shown unexpected resilience of GFDI due to the flexibility for remote work. On the contrary, GFDI in the manufacturing industries, as well as the extractives and the utility industries, has shown a dramatic decline during the pandemic. These contractions raise questions of stability and resilience of the global supply chains these industries are a part of. JEL Codes: F21

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“…In regard to characteristics of IFDI/OFDI in Asia, Doytch (2015) explains that the output gap, used to measure the business cycle stage of the economy, has mixed effects depending on the sector of activity. This means that at the aggregate level, FDI inflows in Asia are correlated with a downward phase of the business cycle, but at the sectoral level, services and financial FDI are countercyclical, contrary to the manufacturing industry, which is not.…”

Section: Determinants Of Locational Choice For Foreign Direct Investmentmentioning

confidence: 99%

Macroeconomic, institutional, and sectoral determinants of outward foreign direct investment: Evidence from Japan

Chiappini

Viaud

2020

Pacific Economic Review

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This paper empirically explores the determinants of outward foreign direct investment (FDI) in the Japanese manufacturing sector. We estimate a gravity model of FDI for 30 host countries covering the period 2005–2017, using Poisson pseudo maximum likelihood to tackle the issue of zero‐value observations. The results indicate that Japanese overseas investments are not only driven by traditional factors, such as market size, the yen real exchange rate, trade openness, differences in perception of corruption, and financial instability, but also by industry characteristics. In particular, we find that low technological industries characterized by growing labour costs are more likely to be relocated abroad. Furthermore, we demonstrate nonlinearities in the determinants of Japanese overseas investments depending on the host country's development, the host country's region, and the category of FDI implemented (vertical vs horizontal).

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Sectoral FDI cycles in South and East Asia

Cited by 21 publications

References 26 publications

Do foreign direct investments help to bolster economic growth? New insights from Asian and Middle East economies

Do foreign direct investments help to bolster economic growth? New insights from Asian and Middle East economies

Tracking Greenfield FDI During the COVID-19 Pandemic: Analysis by Sectors

Macroeconomic, institutional, and sectoral determinants of outward foreign direct investment: Evidence from Japan

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